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Where Should You Invest in African EdTech? (Hint: Not Apps)

The $19.25B African EdTech boom is misplaced. With 89% learning poverty and 75% unconnected, app-first investment fails 80% of learners. Building EdTech infrastructure is the only way to win.

Photo by Desola Lanre-Ologun/Unsplash

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The news about African EdTech is undeniably attractive by every headline. The EdTech market was worth $7.33 billion in 2025 and is expected to reach $19.25 billion by 2034, growing at 11.33% each year. In October 2025, Tracxn reported 2,366 EdTech startups in Sub-Sahara Africa, with about 186 new ones launched annually over the past decade. African EdTech startups also raised $1.42 billion in H1 2025, which is 40% higher year-on-year. By every measure these numbers make the EdTech sector look like a successful growth story.

But the actual situation behind those numbers is much tougher. In Sub-Sahara Africa, primary school enrollment rose from 57% in 1985 to 77% by 2010, but has since stayed stuck at under 80%. Learning poverty in the region now stands at an extreme 89%, according to the World Bank’s 2022 update. Furthermore, GSMA (Global System for Mobile Communications Association) reports that only 416 million people in the continent, or about 28%, use mobile internet, leaving nearly 75% of the population unconnected. This is the central problem in African EdTech: while investors celebrate digital growth, the actual tools and delivery rails to reach most students still do not exist for the majority of learners.

This is why the biggest opportunity in African EdTech is not in making apps. It is in the infrastructure layer. Companies that help learning tools reach students, handle payments, and work well under African market conditions will be the biggest winners. The main issue is not about creating more content. It is about improving how that content is being delivered to learners.

Why Are App-Based Models Missing 80% of African Learners?

Most African EdTech investment currently flows to platforms modeled after Western startups. These typically rely on high-bandwidth video lessons, live streaming, and complex course builders that require high-speed internet to function effectively. Such platforms target users who also have access to digital payment options. Klas is a good example of a strong business for this connected group. It helps digital instructors by providing integrated class management, payments, and community features that serve 5,000 online schools and 300,000 learners across 30+ countries. However, Klas still requires users who can manage live lessons, schedule education workflows, and checkout online. These requirements stand in stark contrast to the majority of Africa, which has to deal with slow internet, basic mobile phones, lack of payment options and occasional power outages.

There are three main problems. First, internet access. Many people in rural areas have poor or no internet. Second, language. Many platforms only use English, which leaves out most learners who speak other languages. Third, payment. About 90% of Africans do not have credit cards or app-store credit. This creates the same monetization ceiling that constrains Africa's gaming sector. Companies that focus only on app stores reach the connected 20% but miss the other unserved 80%. That is why the best opportunity in African EdTech is in the infrastructure layer rather than app-building. These are the businesses that make learning tools easy to reach, pay for, and use under African market conditions.

The gap between investment and the population is clear. Of 2,366 EdTech startups in Sub-Saharan Africa, only 170 have secured funding and merely 14 have reached Series A or beyond, per Tracxn. Even then the funded fraction overwhelmingly skews toward app-based models in Nigeria, South Africa, and Kenya. Meanwhile, the continent's school-age population exceeds 400 million showing the present demand for African-tailored infrastructure tools. 

The potential market for infrastructure solutions is much larger than for app-based platforms. These infrastructure tools are designed to work on basic phones, use local languages, and accept mobile money or carrier billing. Even though this area has much more room to grow, it currently receives very little investment compared to apps.

What Infrastructure Models Offer The Best Return On African Edtech Investments?

The best models are those built to fit the African EdTech market's limits, not bypass them. Eneza Education is the clearest case. The platform reaches over 800,000 students in Kenya, Ghana, and Tanzania using SMS and USSD, not a mobile app. UNESCO describes it as a mobile learning platform that sends lessons, assessments, and personalized feedback via SMS to basic feature phones. It does not require internet, and billing uses mobile airtime. Since 2012, Eneza Education has reached over 10 million learners. This is not just a clever fix; it is a delivery model that fits the structure of the market. SMS/USSD works well in African markets because it uses the existing base of cheap devices and familiar telecom networks. For low-income users, it instantly removes the need for smartphones, app downloads, constant connection, and bank-card payments.

African gaming provides a parallel case study for EdTech. This sector shows that while gaming demand is high, profit depends on fixing gaming payments and content delivery, not just building better apps. The World Economic Forum notes that mobile money and local payments turn gaming fans into paying customers. Carry1st has created a gateway for 120+ local payment methods across Africa. The lesson for EdTech is clear: the company that manages the payment bridge often captures more value than the one that owns the content catalogue. Africa’s education market faces the same structural issues as gaming– high demand, weak credit card infrastructure, and the need for localized monetization.

Connectivity is the second part of the plan. The UNICEF and ITU Giga initiative is now buying equipment to connect 500,000 African schools to the internet by 2030. UNICEF estimates the buildout costs at roughly $6 billion over five years and $1.2 billion in annual operating costs. The UNICEF and ITU Giga initiative's equipment purchasing plan is projected to cut the estimated buildout and annual operating costs by up to 60%. Over 107 private companies are already interested. For investors, this creates a clear, large-scale demand for businesses offering connectivity, device integration, school-management systems, teacher training vendor software, offline-sync tools, and curriculum for learners in constrained networks.

Complementing these institutional efforts is Starlink, a satellite internet service that has expanded to over 18 African countries. Further internet service rollouts are planned for Liberia, Niger, and Chad. This expansion directly supports the Giga initiative’s goals by providing internet access to previously offline schools. However, connectivity alone is not enough without compatible content and payment rails. The real value is found where local-language content, carrier billing integrators, and SMS/USSD distribution platforms meet. These tools will help monetize newly connected users who still lack credit cards.

How Are African Policies Shaping The Demand For Edtech Infrastructure?

African policy is also moving in the same direction. AUDA-NEPAD’s Africa EdTech 2030 Vision & Plan prioritizes digital access and infrastructure, locally developed curriculum-aligned courseware, and open standards and interoperability. Its rollout is phased through foundation building in 2025–2026, system integration in 2027–2028, and consolidation by 2030. 

National strategies are following suit. Nigeria's National Digital Economy Policy 2024–2027 plan focuses on internet access and digital skills. Rwanda, Kenya, Ghana, and South Africa are also creating their own national EdTech plans.

This matters because government policy alignment changes demand. When policy favors open standards and local content, proprietary consumer apps lose some of their advantage, while infrastructure providers gain one. The buyer is not only the parent or student. It can also be the state, the school system, or the telecom operator.

Where Can African Edtech Investors Expect To Find The Best Returns?

For EdTech investors, the message is simple. High-return African EdTech businesses will not resemble Western apps. Instead, they will be companies that lower delivery costs, fix low-bandwidth distribution, localize content, and align payments with how African households already transact. Since issues with connectivity, payments, and access are still very common, the companies that fix these problems will gain the most value.

The mistake is to see Africa’s EdTech future as a contest to build better apps. The African EdTech sector is structurally closer to Africa’s gaming market in terms of large demand, weak monetization rails, and outsized upside for the companies that will own distribution and payments. In this market, the prettiest app is not the prize. The infrastructure between content and the learner is what matters most.

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